FDI conditions for multi brand retail: backend investment, required domestic sourcing from MSMEs, and revised outlet location rules take immediate effect. At least 50% of total FDI in the first tranche of US$100 million must be invested in backend infrastructure within three years; at least 30% of procurement value of manufactured/processed goods must be sourced from Indian micro, small and medium enterprises with plant and machinery investment not exceeding US$2.00 million (SME status fixed at first engagement and cooperatives included), measured as a five year average initially and annually thereafter; retail outlets are limited to cities over 10 lakh population or other cities as allowed by State Governments, covering up to 10 km around municipal/urban agglomerations and conforming to Master/Zonal Plans.